Augusto Solano, a leading figure in the international flower trade, is stepping down at a turbulent time. During the twenty-five years in which he headed Asocolflores, Colombia consolidated its position as the world’s second-largest flower-producing country. That may sound duller than it has been, as Solano began his tenure in a period beset by problems and, at his departure, the situation is no less challenging.
Never a dull moment. It may be a cliché, but it is simply the truth when looking at Augusto Solano’s career at Asocolflores, the trade association for Colombian flower exporters. Colombia’s ornamental horticulture sector is currently facing rising expenses due to higher wages, a new national tax and increased transport costs. A quarter of a century ago, exporters were grappling with 9/11, the bankruptcy of a major trading company and the appreciation of the peso.
Speaking about recent developments, Solano says: “The government wants to introduce a tax on equity, on the net worth of a company. It is unrelated to profit. Even if a company incurs a loss, this tax still has to be paid. The rate ranges from 1% to 3%, depending on the size of the company. So, it applies to the value of all assets, including greenhouses and the like. The tax applies from a net worth of USD 2.5 million upwards. Only one or two countries in the world have such a tax.”
